Italian retailer Conad has reported a 7.5% growth in private label sales during 2016, rising to €3 billion.
The Conad brand has 30% of the private label market, which is worth €10 billion. The share of private label out of total packaged FMCG stood at 27.4% in November 2016 (IRI data), or 0.6% more than in 2015.
However, the figure does not include fresh private label products with variable weight such as fruit and vegetables, meat, sausages and fish, which recorded strong growth last year according to preliminary estimates.
Private label remains one of the strategic assets of the retailer, which is working closely with 620 suppliers.
The Conad brand is a leader in 45% of the private label categories and is second in 75%, claiming to offer 25-30% lower prices than the competition.
Investments in product quality grew by 10% last year, with about 2,500 inspection visits to establishments.
For 2017, commercial director Francesco Avanzini said the plan is to strengthen and improve the brands in the portfolio through innovation and segmentation, within the over 300 categories in which the retailer is present.
All Conad brands have seen growth, with above average values for Conad Percorso Qualità (+17.3%), Verso Natura (+38.3% including Bio) and Sapori&Dintorni (+10.1%). At the end of 2017, there will be 70 products in the fresh category (fruit,vegetables and meats), 90 in the grocery and beverage departments and 50 in cool and cold (ice cream and frozen).
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.
